Insights on doing business in Japan, Europe, and the US
Dr. Robert M. Orr- President, Boeing Japan

Few Americans are able to objectively articulate the differences in business culture between the US, Japan, and Europe. The ability to do so requires both extensive in-country experience and a broad knowledge of political and economic history- difficult to find in one individual. Yet Dr. Robert M. Orr, the newly appointed President of Boeing Japan is one such person. Dr. Orr, “Skipp” as he is known, is a true globetrotter having lived several years in Brussels and 16 years in Japan in both business and academic roles. Dr. Orr’s list of achievements includes the successful negotiation with the Japanese government for greater access to Japan’s telecommunications market during his tenure as director of government relations for Motorola Japan. He is also well known for holding director positions with the Stanford Japan Center in Kyoto and Temple University’s Institute for Pacific Rim Studies. Dr. Orr has written several articles and books related to Japan. His 1991 work "The Emergence of Japan's Foreign Aid Power" was honored with the Masayoshi Ohira prize for best book on the Pacific Basin. Kanabo Consulting recently had a chat with Dr. Orr regarding his thoughts on the culture of international business and Boeing’s positioning. This month’s Bridge Builder features highlights from this fascinating conversation.

Q. After several years working in Brussels, you’re back now in Japan. What is your impression of Japan, particularly in contrast to the rest of the world?

A. Most specialists on Japan have a deep Japan/US focus and have come to the conclusion that Japan is an outlier when compared to the rest of the world. However, when you add Europe to the equation you realize that it’s actually the US that’s the outlier. Japan is actually quite similar to Europe particularly in respect to the way the people view the government. In Japanese there is an expression called” Kanson minpi” which translated means “revere the bureaucrats, despise the people”. There is a little bit of that in Europe from my experience working with Europeans who seem to view approaching the government as the last resort to problem resolution.

Q. After so many years living in Japan, do you think Japan has changed you?

A. When I was living in Europe, many of my colleagues there seemed to think I was more Japanese than American based on my approach to things. But I believe that much of my thinking came out of my time in Washington. Washington and Tokyo are both “political” towns and require similar tactics for success. The other factor is that I’m from Florida and a Southerner. Southerners are similar to Japanese on several levels. We both tend to address situations in indirect ways.

Q. What about your opinion of the US from the perspective of someone who has lived so long abroad?

A. One issue I perceive is that as much as US companies say they are “global” they are still extremely US-centric. My experience with Motorola is typical. Most key decisions regarding Japan came out of the headquarters in Schaumberg. I strongly recommended to Motorola HQ that they prepare for an all-digital revolution in wireless Japan. Yet Motorola headquarters waited too long. I also sense that many countries perceive the US to be very unilateral. The Europeans are more inclined to be frank with us about this than the Japanese.

Q. Any other impressions of Japan in light of the continued recession here?

A. No matter what the economists says, Japan is still a giant and should never be underestimated economically or politically. Japan is #2 in defense spending, has the second largest F-15 squadron, and has the largest destroyer fleet in the Pacific. In my opinion, Japan’s problems are more political than economic. Japan has a highly educated workforce and developed infrastructure- critical factors for growth.

Q. What about changes in Japan in recent times? Any thing you’ve noticed in the government? In Business?

A. I think the attitude towards government has changed. The Japanese government has lost a lot of credibility with the people. Overprotection is great when things are going well. But there seems to be less respect for bureaucrats now after so many years of recession. It seems like people are more advanced now than the politicians. On the business side, there is similarly less respect for traditional Japanese companies. Lifetime employment is now all but gone. Foreign companies have become very attractive here, particularly for women. Consumers are also not so nationalistic- they’re increasingly willing to buy foreign made products over domestic ones.

Q. Now let’s talk about Boeing. What are your goals as President of Boeing Japan?

A. I want to help the company become a truly global company with a global perspective. Phil Condit, chairman and CEO of The Boeing Company has made this a top priority by adding many globally and politically savvy experts from outside Boeing to head our country offices. In addition, we have Thomas Pickering one of the few US Career Ambassadors as Senior VP for International Relations. Here in Japan, we have about 70 people and offer sales, marketing, and support to customers which include JAL, ANA, and the Self Defense forces. We can sell as much as we want in Japan.

Q. Speaking of the Japanese SDF, any perceived changes there?

A. A sea of change has occurred. Look at the Japanese participation in Afghanistan. This would have been unthinkable a decade ago. Japan tends to look at Berlin rather than Washington when it makes these kinds of decisions. Germany and Japan are in similar situations. The US came out of WWII learning that you must stop aggression before it starts. Germany and Japan, came out of WW II realizing that one needs to go one step further: you must stop militarism itself before it starts. Hence the pressure from Japanese circles to keep the strict policy of defense only purchases.

Thank you Dr. Orr for your time and thoughts. To find out more information about Boeing, please visit http://www.boeing.com

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